CVS Touts Value of Aetna; Molina Sees Exchange Woes

During a Feb. 12 presentation outlining its 2019 financial results, CVS Health Corp. touted a “successful first full year with Aetna,” saying the transaction produced “synergies above expectations” at approximately $500 million. And CVS’s Health Benefits segment — which houses its new insurance business — posted a “solid” fourth quarter, in the words of Citi Research securities analyst Ralph Giacobbe. Meanwhile, Molina Healthcare Inc., which posted its full-year and fourth-quarter 2019 earnings on Feb. 11, reported quarterly results that were “largely in line” with Wall Street’s consensus estimates, according to Jefferies analysts David Windley and David Styblo. But the analysts also highlighted an underwhelming performance from Molina’s Affordable Care Act (ACA) exchange business.

Across its enterprise in 2019, CVS delivered adjusted earnings per share (EPS) of $7.08 with total revenues of nearly $257 billion — a 32% year-over-year increase “reflecting a full year of Aetna’s operations and positive momentum across our enterprise,” CEO Larry Merlo told investors during the company’s earnings call, per a transcript of the call published by the Motley Fool.

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